Investing.com – The Reserve Bank of Australia kept its benchmark interest rate unchanged for the fifth straight meeting in May, it announced on Tuesday.
In a statement, the RBA said it was keeping its benchmark interest rate unchanged at 4.75%, broadly in line with expectations.
In its accompanying rate statement the RBA said, “The rising exchange rate will be helping to hold down prices for some consumer products over the coming few quarters.”
“Over the longer term, inflation can be expected to increase somewhat if economic conditions evolve broadly as expected.”
The statement added that the board judged that the current mildly restrictive stance of monetary policy remained appropriate.
Following the decision, the Australian dollar was down against its U.S. counterpart, with AUD/USD shedding 0.37% to hit 1.0904.
In a statement, the RBA said it was keeping its benchmark interest rate unchanged at 4.75%, broadly in line with expectations.
In its accompanying rate statement the RBA said, “The rising exchange rate will be helping to hold down prices for some consumer products over the coming few quarters.”
“Over the longer term, inflation can be expected to increase somewhat if economic conditions evolve broadly as expected.”
The statement added that the board judged that the current mildly restrictive stance of monetary policy remained appropriate.
Following the decision, the Australian dollar was down against its U.S. counterpart, with AUD/USD shedding 0.37% to hit 1.0904.